Sunday, November 19, 2006

Auditing Consumer Behavior: A Process for Building Marketing Strategy

A complete understanding of the influences that affect consumer behavior is an essential foundation for building a marketing strategy. Hawkins, Best, and Coney (2001) suggested a process for identifying information associated with the critical decisions that marketing managers must make about major elements of marketing. The outline for auditing consumer behavior has been simplified and generalized below, but the execution of the process can be invaluable for identifying challenges and opportunities for improving marketing strategy.

Marketing Decision Areas

Market segmentation – division of all possible product users (i.e., consumers) into groups with similar needs to satisfy for product development and media selection.

Product positioning – determination of a desirable product or brand position in the mind of the consumer relative to competing brands.

Price – pricing policy consistent with the determined product position. The price is the all inclusive set of consideration that the consumer must tender in exchange for the product or service, such as time, patience, learning, and money.

Place (Distribution Strategy) – channel or distribution strategy, such as retail, wholesale, or Internet, etc. consistent with the determined product position at which title to the product is relinquished or the service is performed.

Antecedent states and situations (e.g., product or offer communications, purchase, use, or definition)

Decision process influences (i.e., stages)

Problem recognition

Information search

Alternative evaluation

Outlet selection

Purchase

Post-purchase processes (e.g., use, disposition, and evaluation)

By interweaving the decision areas with the relevant customer influences listed above, it is possible to outline the areas in which data should be gathered in order to construct a complete consumer behavior audit template as follows:

By completing the above steps and answering all the associated questions regarding customer influences at each of the stages, the marketing manager should have a thorough understanding of the influences on consumer behavior and the key decision areas in which the influences are activated.

About Me

Hi. Dave Wagner here from Silicon Valley. I have earned advanced degrees, taught several college subjects, and experienced many years of building successful companies. This background powers this blog. Please cite these articles as you wish, but do not redistribute these copyrighted materials. Email me at "dvwgnr at gmail dot com". Talk to you soon.